SECTION 4

Common Carriers (n)

SUBSECTION 1
General Provisions

ARTICLE 1732. Common carriers are persons, corporations, firms or associations engaged in
the business of carrying or transporting passengers or goods or both, by land, water, or air,
for compensation, offering their services to the public.

ARTICLE 1733. Common carriers, from the nature of their business and for reasons of public
policy, are bound to observe extraordinary diligence in the vigilance over the goods and for
the safety of the passengers transported by them, according to all the circumstances of
each case.

Such extraordinary diligence in the vigilance over the goods is further expressed in articles
1734, 1735, and 1745, Nos. 5, 6, and 7, while the extraordinary diligence for the safety of
the passengers is further set forth in articles 1755 and 1756.

SUBSECTION 2
Vigilance Over Goods

ARTICLE 1734. Common carriers are responsible for the loss, destruction, or deterioration of
the goods, unless the same is due to any of the following causes only:

(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;

(2) Act of the public enemy in war, whether international or civil;

(3) Act or omission of the shipper or owner of the goods;

(4) The character of the goods or defects in the packing or in the containers;

(5) Order or act of competent public authority.

ARTICLE 1735. In all cases other than those mentioned in Nos. 1, 2, 3, 4, and 5 of the
preceding article, if the goods are lost, destroyed or deteriorated, common carriers are
presumed to have been at fault or to have acted negligently, unless they prove that they
observed extraordinary diligence as required in article 1733.

ARTICLE 1736. The extraordinary responsibility of the common carrier lasts from the time
the goods are unconditionally placed in the possession of, and received by the carrier for
transportation until the same are delivered, actually or constructively, by the carrier to the
consignee, or to the person who has a right to receive them, without prejudice to the
provisions of article 1738.

ARTICLE 1737. The common carrier's duty to observe extraordinary diligence over the
goods remains in full force and effect even when they are temporarily unloaded or stored in
transit, unless the shipper or owner has made use of the right of stoppage in transitu.

ARTICLE 1738. The extraordinary liability of the common carrier continues to be operative
even during the time the goods are stored in a warehouse of the carrier at the place of
destination, until the consignee has been advised of the arrival of the goods and has had
reasonable opportunity thereafter to remove them or otherwise dispose of them.

ARTICLE 1739. In order that the common carrier may be exempted from responsibility, the
natural disaster must have been the proximate and only cause of the loss. However, the
common carrier must exercise due diligence to prevent or minimize loss before, during and
after the occurrence of flood, storm or other natural disaster in order that the common
carrier may be exempted from liability for the loss, destruction, or deterioration of the
goods. The same duty is incumbent upon the common carrier in case of an act of the public
enemy referred to in article 1734, No. 2.

ARTICLE 1740. If the common carrier negligently incurs in delay in transporting the goods,
a natural disaster shall not free such carrier from responsibility.

ARTICLE 1741. If the shipper or owner merely contributed to the loss, destruction or
deterioration of the goods, the proximate cause thereof being the negligence of the common
carrier, the latter shall be liable in damages, which however, shall be equitably reduced.

ARTICLE 1742. Even if the loss, destruction, or deterioration of the goods should be caused
by the character of the goods, or the faulty nature of the packing or of the containers, the
common carrier must exercise due diligence to forestall or lessen the loss.

ARTICLE 1743. If through the order of public authority the goods are seized or destroyed,
the common carrier is not responsible, provided said public authority had power to issue the
order.

ARTICLE 1744. A stipulation between the common carrier and the shipper or owner limiting
the liability of the former for the loss, destruction, or deterioration of the goods to a degree
less than extraordinary diligence shall be valid, provided it be:

(1) In writing, signed by the shipper or owner;

(2) Supported by a valuable consideration other than the service rendered by the common
carrier; and

(3) Reasonable, just and not contrary to public policy.

ARTICLE 1745. Any of the following or similar stipulations shall be considered unreasonable,
unjust and contrary to public policy:

(1) That the goods are transported at the risk of the owner or shipper;

(2) That the common carrier will not be liable for any loss, destruction, or deterioration of
the goods;

(3) That the common carrier need not observe any diligence in the custody of the goods;

(4) That the common carrier shall exercise a degree of diligence less than that of a good
father of a family, or of a man of ordinary prudence in the vigilance over the movables
transported;
(5) That the common carrier shall not be responsible for the acts or omission of his or its
employees;

(6) That the common carrier's liability for acts committed by thieves, or of robbers who do
not act with grave or irresistible threat, violence or force, is dispensed with or diminished;

(7) That the common carrier is not responsible for the loss, destruction, or deterioration of
goods on account of the defective condition of the car, vehicle, ship, airplane or other
equipment used in the contract of carriage.

ARTICLE 1746. An agreement limiting the common carrier's liability may be annulled by the
shipper or owner if the common carrier refused to carry the goods unless the former agreed
to such stipulation.

ARTICLE 1747. If the common carrier, without just cause, delays the transportation of the
goods or changes the stipulated or usual route, the contract limiting the common carrier's
liability cannot be availed of in case of the loss, destruction, or deterioration of the goods.

ARTICLE 1748. An agreement limiting the common carrier's liability for delay on account of
strikes or riots is valid.

ARTICLE 1749. A stipulation that the common carrier's liability is limited to the value of the
goods appearing in the bill of lading, unless the shipper or owner declares a greater value,
is binding.

ARTICLE 1750. A contract fixing the sum that may be recovered. by the owner or shipper
for the loss, destruction, or deterioration of the goods is valid, if it is reasonable and just
under the circumstances, and has been fairly and freely agreed upon.

ARTICLE 1751. The fact that the common carrier has no competitor along the line or route,
or a part thereof, to which the contract refers shall be taken into consideration on the
question of whether or not a stipulation limiting the common carrier's liability is reasonable,
just and in consonance with public policy.

ARTICLE 1752. Even when there is an agreement limiting the liability of the common carrier
in the vigilance over the goods, the common carrier is disputably presumed to have been
negligent in case of their loss, destruction or deterioration.

ARTICLE 1753. The law of the country to which the goods are to be transported shall govern
the liability of the common carrier for their loss, destruction or deterioration.

ARTICLE 1754. The provisions of articles 1733 to 1753 shall apply to the passenger's
baggage which is not in his personal custody or in that of his employee. As to other
baggage, the rules in articles 1998 and 2000 to 2003 concerning the responsibility of hotel-
keepers shall be applicable.

SUBSECTION 3
Safety of Passengers
ARTICLE 1755. A common carrier is bound to carry the passengers safely as far as human
care and foresight can provide, using the utmost diligence of very cautious persons, with a
due regard for all the circumstances.

ARTICLE 1756. In case of death of or injuries to passengers, common carriers are presumed
to have been at fault or to have acted negligently, unless they prove that they observed
extraordinary diligence as prescribed in articles 1733 and 1755.

ARTICLE 1757. The responsibility of a common carrier for the safety of passengers as
required in articles 1733 and 1755 cannot be dispensed with or lessened by stipulation, by
the posting of notices, by statements on tickets, or otherwise.

ARTICLE 1758. When a passenger is carried gratuitously, a stipulation limiting the common
carrier's liability for negligence is valid, but not for wilful acts or gross negligence.

The reduction of fare does not justify any limitation of the common carrier's liability.

ARTICLE 1759. Common carriers are liable for the death of or injuries to passengers
through the negligence or wilful acts of the former's employees, although such employees
may have acted beyond the scope of their authority or in violation of the orders of the
common carriers.

This liability of the common carriers does not cease upon proof that they exercised all the
diligence of a good father of a family in the selection and supervision of their employees.

ARTICLE 1760. The common carrier's responsibility prescribed in the preceding article
cannot be eliminated or limited by stipulation, by the posting of notices, by statements on
the tickets or otherwise.

ARTICLE 1761. The passenger must observe the diligence of a good father of a family to
avoid injury to himself.

ARTICLE 1762. The contributory negligence of the passenger does not bar recovery of
damages for his death or injuries, if the proximate cause thereof is the negligence of the
common carrier, but the amount of damages shall be equitably reduced.

ARTICLE 1763. A common carrier is responsible for injuries suffered by a passenger on

account of the wilful acts or negligence of other passengers or of strangers, if the common
carrier's employees through the exercise of the diligence of a good father of a family could
have prevented or stopped the act or omission.

SUBSECTION 4
Common Provisions

ARTICLE 1764. Damages in cases comprised in this Section shall be awarded in accordance
with Title XVIII of this Book, concerning Damages. Article 2206 shall also apply to the death
of a passenger caused by the breach of contract by a common carrier.

ARTICLE 1765. The Public Service Commission may, on its own motion or on petition of any
interested party, after due hearing, cancel the certificate of public convenience granted to
any common carrier that repeatedly fails to comply with his or its duty to observe
extraordinary diligence as prescribed in this Section.

ARTICLE 1766. In all matters not regulated by this Code, the rights and obligations of
common carriers shall be governed by the Code of Commerce and by special laws.